Updated at 3:05 p.m. ET
A diplomatic push to end Israel's nearly weeklong offensive in the Gaza Strip was put on hold after a top adviser to Egypt's president said that the expected announcement of a possible cease-fire between Israeli forces and Hamas militants would not happen Tuesday, CBS News correspondent Clarissa Ward reports from Cairo.
The unnamed adviser to Egyptian President Mohammed Morsi had said Morsi would announce the cease-fire Tuesday night Cairo time. Nearly an hour after the expected time of the announcement, the adviser said it wasn't going to happen Tuesday night without giving an exact reason, Ward reports.
The delay came after the Israeli death toll rose to five with the deaths Tuesday of an Israeli soldier and a civilian contractor. The Israeli army said in a statement that the death of the 18-year-old serviceman was the military's first fatality since it launched the offensive in the Gaza Strip last Wednesday. More than 130 Palestinians have been killed.
In what appeared to be a last-minute burst of heavy fire before the possible cease-fire, Israeli tanks and gunboats shelled targets late Tuesday.
Meanwhile, the head of the Hamas-run Al Aqsa TV station said an Israeli airstrike killed two cameramen after they wrapped up an assignment at Gaza's Shifa Hospital, while a Gaza health official said another airstrike killed a third journalist.
Al Aqsa footage of Tuesday's strike shows the vehicle going up in flames. The station's head, Mohammed Thouraya, said the car had press markings. The other journalist, who was working for a private radio station, was killed later Tuesday when a missile hit his car, the official said. Israel's military had no immediate comment.
Earlier, a source close to the Hamas delegation in Cairo told Ward that he believed some agreement would be reached "within a few hours."
According to the source, Israel wants Hamas to stop rocket fire for an initial 24 hours, and then the Jewish state would theoretically meet some of the militant group's demands.
Ward notes, however, that previous remarks from diplomats suggesting a deal was near have proven premature, as Israel remains reluctant to accept Hamas' key demand that a total blockade on the Gaza Strip be lifted. Israel fears that lifting the blockade would allow more weapons to flow into the tiny Palestinian territory.
Israel has not formally said a deal has been reached, and even Hamas officials issued conflicting comments earlier Tuesday about an agreement. A senior Hamas official told The Associated Press that his group was close to a cease-fire after the Reuters news agency reported a deal had been reached.
Moussa Abu Marzouk told the AP from Cairo that "we haven't struck the deal yet, but we are progressing and it will most likely be tonight," after Ayman Taha told Reuters that "an agreement for calm has been reached."
At a press conference with U.N. chief Ban Ki-moon, Israeli Prime Minister Benjamin Netanyahu said, "If a long-term solution can be put in place by diplomatic means, Israel will be a willing partner."
Meanwhile, a Palestinian rocket struck the outskirts of Jerusalem in one of the longest rocket strikes fired from the Gaza Strip in nearly a week of fighting as diplomats from around the world sought to contain the bloody conflict.
The rocket attack, the second aimed at the holy city since an Israeli offensive began a week ago, set off air raid sirens throughout the metropolis. A distant explosion could be heard in the city's downtown. Jerusalem residents ran for cover as buses and trains stopped to let passengers off.
Police spokesman Micky Rosenfeld said the rocket landed in Gush Etzion, a collection of Jewish West Bank settlements southeast of the city. Last Friday's attempt to hit Jerusalem landed in the same area. No one was wounded in either attack.
Jerusalem, nearly 50 miles from Gaza, is the most distant city the militants have targeted, signaling an increasing sophistication in their arsenal.
Tuesday's rocket attack occurred as diplomats were trying to work out a cease-fire. Israeli officials estimate that Gaza's Hamas rulers will try to stage similar attacks ahead of any truce taking hold.
Morsi, perhaps the most important interlocutor between the militant Hamas group that rules the Palestinian territory and the Israelis, had earlier predicted Tuesday that the offensive would end within hours.
Morsi gave no explanation for his statement, saying only that the negotiations between the two sides will yield "positive results" during the coming hours.
President Obama dispatched Secretary of State Hillary Rodham Clinton to the Mideast from Cambodia, where she had accompanied Mr. Obama on a visit.
The Palestinian rocket was fired toward Jerusalem just minutes before Ban arrived in the holy city.
"This must stop, immediate steps are needed to avoid further escalation, including a ground operation," Ban said from Egypt. "Both sides must hold fire immediately ... Further escalation of the situation could put the entire region at risk."
The attacks aimed at Jerusalem and the Tel Aviv area have dramatically showcased the militants' new capabilities, including a locally made M-75 rocket that appears to have taken Israeli defense officials by surprise.
Both areas had remained outside the gunmen's reach in past rounds of fighting, and their use dramatically escalated the hostilities. For more than a decade, the militants' range had been limited to steadily broadening sections of southern Israel.
The attack on Jerusalem was especially audacious, both for its symbolism and its distance from Gaza. Jerusalem had previously been considered beyond the range of Gaza rockets — and an unlikely target because it is home to the Al-Aqsa Mosque compound, Islam's third-holiest shrine.
Shortly afterward, an Israeli airstrike destroyed a car in Gaza City killing five people and seriously wounding four others. Their identities were not immediately known.
In a sign of the difficulty diplomats will have in forging such a cease-fire, a man identified as Mohammed Deif, Hamas' elusive military commander, urged his fighters to keep up attacks on Israel.
Speaking from hiding on Hamas-run TV and radio, Deif said Hamas "must invest all resources to uproot this aggressor from our land," a reference to Israel.
Deif is one of the founders of Hamas' military wing and was its top commander until he was seriously wounded in an Israeli airstrike in 2003. He was replaced as the de facto leader by Ahmed Jabari, who was assassinated by Israel last week in the opening salvo of its latest Gaza offensive.
The U.S. considers Hamas, which has killed hundreds of Israelis in suicide and other attacks, to be a terror group and does not meet with its officials. The Obama administration blames Hamas for the latest eruption of violence and says Israel has the right to defend itself. At the same time, it has warned against a ground invasion, saying it could send casualties spiraling.
An airstrike Tuesday killed a senior Hamas militant identified as Amin Al Dada and wounded two others, Gaza heath official Ashraf al-Kidra said.
By Tuesday, 115 Palestinians, including 54 civilians, were killed since Israel began an air onslaught that has so far included nearly 1,500 strikes. Some 840 people have been wounded, including 225 children, Gaza health officials said.
Three Israeli civilians have also been killed and dozens wounded since the fighting began last week, the numbers possibly kept down by a rocket-defense system that Israel developed with U.S. funding. More than 1,000 rockets have been fired at Israel this week, the military said.
Netanyahu said Tuesday that Israel was exploring a diplomatic solution, but wouldn't balk at a broader military operation.
"I prefer a diplomatic solution," Netanyahu said in a statement after meeting with Germany's Foreign Minister Guido Westerwelle, who is also in the region trying to advance peace efforts. "But if the fire continues, we will be forced to take broader measures and will not hesitate to do so."
Westerwelle said a truce must be urgently pursued, "but of course, there is one precondition for everything else, and this is a stop of the missile attacks against Israel."
The conflict erupted last week, when a resurgence in rocket fire from Gaza set off the Israeli offensive, which included hundreds of airstrikes on militants' underground rocket launchers and weapons' stores.
The onslaught turned deadlier over the weekend, as airstrikes began targeting the homes of suspected Hamas activists, leading to a spike in civilian casualties. Israel sent warnings in some cases, witnesses said, but in other instances missiles hit suddenly, burying residents under the rubble of their homes.
Hamas is deeply rooted in densely populated Gaza, and the movement's activists live in the midst of ordinary Gazans. Israel says militants are using civilians as human shields, both for their own safety and to launch rocket strikes from residential neighborhoods.
Early Tuesday, Israeli aircraft targeted another Hamas symbol of power, battering the headquarters of the bank senior Hamas officials set up to sidestep international sanctions on the militant group's rule. After Hamas violently overran Gaza in June 2007, foreign lenders stopped doing business with the militant-led Gaza government, afraid of running afoul of international terror financing laws.
The inside of the bank, which was set up by leading Hamas members and describes itself as a private enterprise, was destroyed. A building supply business in the basement was damaged.
Owner Suleiman Tawil, 31, grimly surveyed the damage to his store and six company cars. "I'm not involved in politics," he said. "I'm a businessman. But the more the Israelis pressure us, the more we will support Hamas."
Fuad Hijazi and two of his toddler sons were killed Monday evening when missiles struck their one-story shack in northern Gaza, leaving a crater about seven to 10 feet deep in the densely populated neighborhood. Residents said the father was not a militant.
The conflict showed signs of spilling into the West Bank, as hundreds of Palestinian protesters in the town of Jenin clashed with Israeli forces during a demonstration against Israel's Gaza offensive.
Two Palestinian protesters were killed in anti-Israel demonstrations in the West Bank on Monday, according to Palestinian officials. Separate clashes occurred Tuesday in Ramallah, the seat of the Palestinian government, during the funeral for one of the dead.
Abbas, who lost control of Gaza to Hamas in 2007, now governs from the West Bank. Abbas claims to represent both areas, and there is widespread sympathy among West Bank Palestinians for their brethren in Gaza.
As part of truce efforts, Ban was to meet with Israeli President Shimon Peres in Jerusalem on Tuesday. In Cairo, Ban said he would also travel to the West Bank to meet with Palestinian President Mahmoud Abbas.
Egypt, the traditional mediator between Israel and the Arab world, has been at the center of recent diplomatic efforts involving the U.S., Turkey, Qatar and other nations.
Israel demands an end to rocket fire from Gaza and a halt to weapons smuggling into Gaza through tunnels under the border with Egypt. It also wants international guarantees that Hamas will not rearm or use Egypt's Sinai region, which abuts both Gaza and southern Israel, to attack Israelis.
Hamas wants Israel to halt all attacks on Gaza and lift tight restrictions on trade and movement in and out of the territory that have been in place since Hamas seized Gaza by force in 2007. Israel has rejected such demands in the past.
Hamas leader Khaled Mashaal told reporters in Cairo on Monday that Hamas would only agree to a cease-fire if its demands are met. "We don't accept Israeli conditions because it is the aggressor," he said. "We want a cease-fire along with meeting our demands."